Trends in the development and improvement of the pension system in the Republic of Kazakhstan

Abstract

The article addresses an acute issue of forming a modern pension system in the Republic of Kazakhstan in conditions of emerging market economy and aging population. The article examines the development and implementation of the national pension system in Kazakhstan in the 1990’s and 2000’s with the transition from state Pay-As-You-Goto a predominantly accumulative pension system, at the same time maintaining minimum social guarantees and increasing the official retirement age in the country. It also traces the transition from a decentralized system of mandatory funded pension insurance based on non-state pension funds to a centralized system represented by a Single accumulative pension Fund, with a gradual leveling of retirement age of men and women to 63 years. Drawing on SWOT analysis, the article identifies the priority directions for the development of the pension system in Kazakhstan with the formation of a multi-level model designed to ensure an increase in pensioners’ standard of living. The final part of the article presents the authors’ analysis of the national pension system and its place within the rating of the countries participating in the Global retirement index MMGPI and its sub-indices. The authors suggest certain measures for its improvement, such as raising the minimum retirement security, introducing additional compulsory insurance of employers’ contributions, tax incentives for voluntary pension savings, diversification of investment strategies including the right of citizens to choose a managing company.

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